Land banks in Michigan own and manage (i.e. upkeep, demolition, rehabilitation, new construction, vacant lot
improvements, etc.) the most distressed residential, commercial and industrial properties in the state.
Various studies provide measurable and objective and evidence that these properties have negative impacts
on the neighborhoods they are in. These studies also provide strong evidence that property intervention
activity disrupts and alleviates the negative impact that distressed properties have on their neighborhoods.
While true, the size of the distressed property problem in Michigan remains larger than the resources currently
allocated to address it.

KEY FINDINGS FROM REVIEW OF QUANTITATIVE STUDIES
• Land bank activity has positive impacts on home values and is shown to reduce mortgage foreclosure
and crime rates.
• The property value protection and appreciation benefit that is experienced from residential demolition
and residential rehabilitation far outweighs the cost of these activities.
• The impact of distressed property interventions varies greatly based on the attributes of the neighborhoods
they are performed in.
• If land banks are provided with sufficient resources to identify and study neighborhood attributes and
intervention outcomes, it will enable them to increase the positive impacts from each dollar spent.

KEY FINDINGS OF QUANTITATIVE ASSESSMENT
The positive impacts of land bank property intervention and expenditure activities were estimated for three
county-level land bank authorities in Michigan: Benzie, Calhoun and Kalamazoo, see below. 

 

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